As the week is progressing, some hope is returning. That’s how we can sum up this week. We had a worst possible start to September with a biggest single day fall of the year, but the recovery we saw yesterday after touching 10750 mark, gives us some hope. I have written extensively about technicals yesterday because those are the only things which are pulling the markets now.
Globally things are looking good with US-China trade talks resuming and Dow Jones went up more than 200 points last night. Another news is coming from Hong Kong where there is a truce expected with Mainland China and that is giving a big boost to it. After a very positive day yesterday, today also it is up more than 150 points and along with it all the other markets are also in the green.
On the domestic front, it was technicals that move the market completely and as the Nifty touched the 10750 mark there was some buying that came up and we saw a 100 point rally in the market and Nifty closed around the 10850 mark. Yesterday, I also talked about a no trade day till the Nifty clears the 10880 resistance and now its very close to overcoming it.
Today also will be a day of consolidation, where the positive global triggers should lift Nifty above 10880 mark and that will immediately take Nifty to 10970 which is the 20dma and that will be a halting point for it. Today being the expiry day, there can be a volatility and for any up move, 10950-10980 technically will be a resistance. If this is taken out then 11200 is the next target we will be looking on upside.
On the derivatives front, the 100 point intraday rally has brought about some cheer in the Futures market. Though FIIs sold close to 1700 Cr in cash market and DIIs bought 1300 Cr, still the market went up because of close to 1100 Cr buying that happened in Futures market. This was on the back of short covering as well as fresh buying in the futures market.
On the options front, there was a lot of call buying which kept the Nifty put call ratio at 1.08 up from 1.04. 10700 put added 6.3 lakh positions and 10800 put added 5.5 lakh positions and for today’s expiry 10800 put has the highest open interest on put side. On the call side 10800 call added 6.2 lakh positions followed by 10900 call that added 4.3 lakh positions. 11000 strike on the call side has the highest open interest for today’s expiry.
What is the Nifty call for the day?
Yesterday we had a relief as Nifty recovered intra day and closed very near to the 10850 mark. Today there is a lot of positive vibes from global markets and that means we will also open positive between 10860-10890 mark and that means we have a chance of crossing the 10880 resistance at opening itself. If Nifty holds that level then intraday we can touch the 10950-10970 mark.
If 10880 fails then we can touch 10820-10850 mark which could be a support. Today is the weekly options expiry, so the 3PM move can take Nifty to as low as 10780. So, the trade for the day is, if Nifty holds 10880 mark you can go long with 10950 as the target. Just try to close the positions before the volatile 3PM move.